SHILLONG: The CAG report for the year ended March 31, 2014 has revealed that undue financial benefit of Rs.43.38 lakh was extended to a firm which was engaged by the State Government for installation of the Access Control System (ACS) in the Meghalaya Secretariat.
The report said the Information Technology Department had identified 13 entry and exit points for the installation of ACS and the Secretariat Administration Department (SAD) had issued notice inviting tenders in January, 2010. M/S Nice InfoTech, Shillong, being the lowest bidder at Rs.98.91 lakh, was selected. Subsequently, the Purchase Board of the SAD increased the number of entry/exit points to 19 and based on a fresh offer, awarded the work to the same firm for Rs.1.80 crore.
The scrutiny by the CAG revealed that the firm supplied the equipment for ACS valued at Rs.2.10 crore between August 2011 and March 2012. Payment of Rs.90 lakh was, however, made to the firm in March, 2011 even before the commencement of supply while Rs.120.30 lakh was paid in March, 2012.
According to the report, the ACS was commissioned in May, 2012 after a one-month test run, but the firm did not provide the requisite training to any of the staff of the SAD. Even then, the entire payment of Rs.2.20 crore including Rs.16.65 lakh, which was to be paid only after training was imparted, was made to the firm.
It was also revealed that the firm had offered a rate of Rs.12.60 lakh for managing the ACS for one year from April 2012 to March 2013. In June 2013, the firm submitted a bill of Rs.16.99 lakh being the cost of manpower engaged for the management of ACS from April 2012 to March 2013, and the amount was paid to the firm.
Since the supply order for Rs.1.80 crore issued to the firm in November 2010 included Rs.13.90 lakh for manpower to maintain the ACS for one year, the CAG termed the payment of further amount of Rs.16.99 lakh for the same purpose and the same year as unjustified and indicative of SAD’s apathy to safeguard the financial interest of the State.
A per the agreement signed in November 2010 M/S Nice InfoTech was to maintain the system for five years without charging any additional cost.
However, the firm submitted a bill of Rs.9.74 lakh as annual maintenance charge for the year 2012-13 and received the payment in September 2013.
Incidentally, the one-year contract agreement executed in March 2012 for management of the ACS from April 2012 till March 2013 was no extended but the firm submitted an annual maintenance bill of Rs.9.74 lakh for the period April 2013 to March 2014, which was paid by the SAD to the firm in September 2013.
The CAG stated that lack of proper monitoring and inability of the SAD to check the bills resulted in excess payment of Rs 43.38 lakh to M/S Nice InfoTech at the cost of the State exchequer.
